Mayor: Make cuts or there will be layoffs

David Robinson

Friday

Jan 22, 2010 at 12:01 AMJan 22, 2010 at 10:13 PM

The Frankfort Village Board has told its department heads that budget cuts will have to be made to avoid layoffs.

Mayor Frank Moracco confirmed Thursday that a memo went out describing potential budget shortfalls in the upcoming fiscal year. “We told [department heads] to take a serious look at their budgets, for where they could make cuts to avoid layoffs,” he said in a phone interview.

The Frankfort Village Board has told its department heads that budget cuts will have to be made to avoid layoffs.
Mayor Frank Moracco confirmed Thursday that a memo went out describing potential budget shortfalls in the upcoming fiscal year. “We told [department heads] to take a serious look at their budgets, for where they could make cuts to avoid layoffs,” he said in a phone interview.
Moracco said the budget process is underway, having to be completed by April 1, and a number of measures can be taken to avoid any reduction in the village workforce. “To layoff any employees would obviously be the last step any board would take,” he added.
While the main area of concern is the Water Department’s budget, Moracco said any fiscal shortfall affects the entire village workforce since many employees perform tasks for multiple departments.
There are 15 village employees, not counting elected officials or the police department and court system, and six perform tasks for the Department of Public Works, and sewer and water services, Moracco said.
A legal settlement last year with the county, requiring the village to pay $585,000 to free itself from a workers’ compensation insurance plan obligation, is a major contributor to the budget shortfall, Moracco said.
A one-time payment from residents in the 2009-10 budget, of $3.65 per $1,000 of assessed value, helped in covering the general fund portion (over $200,000) of the settlement. Power and light department funds paid another over $200,000.
But it appears a bond for the water department’s share (over $140,000) of the settlement may create a $35,000 budget gap in the coming fiscal year, Moracco said. If the village board is able to expand its bond repayment term, which it is attempting to accomplish, the gap may be lower, he added.
Moracco said water rate increases or changes in how a $10.50 surcharge is applied to multiple-occupancy properties could be discussed to avoid layoffs. The goal is to maintain the village workforce and services it offers to residents, according to Moracco. ”We’ll look at every possible avenue to make sure services are still there,” he said.

Fire chief irritated at budget cuts

Village Fire Chief Chuck Conigliaro addressed the mayor and the village board Thursday about the memo during his report. He said he was irritated by the memo since he has for the past nine years continually come in under budget. The exception was in the 2005-06 budget when a new tank needed to be replaced on a tanker. That surpassed the budget by $2,356.25.
Conigliaro passed out a table to the village board to show the fire department’s budget from 2001 to present. It also included information about grants they have received - $910,742.36 total between 2001-09 with the village matching $23,502 of it. It also showed the amount of grants they had not received - a total of about $1.5 million.
“We’re definitely out here to promote to taxpayers and citizens what we have done and continue to do,” Conigliaro said before the meeting, also stating that they have already made many budget concessions.
He said the implication of lay-offs irritated him since his fire department is all voluntary. Moracco said that portion of the memo was not directed towards the fire department and was instead meant for other departments with paid employees.
Moracco did ask for them to look how to make even more cuts since they are working on such a tight budget this year. In what started to become a heated exchange, he asked whether the fire chief needed a cell phone in his car. Conigliaro responded that he does need it so he can be reached at all times in the event of an emergency.
“I’d love to give you all Cadillacs. But we’re not going to be in a position in 2010-2011 to give you all Cadillacs,” said Moracco.

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